“That woman filed a claim in our bankruptcy case, and we don’t owe her any money!” The next line, or paragraph really, of my client’s email asked what was I, her bankruptcy lawyer, going to do about it. The short answer was nothing. Nada. Not a thing. Zero. Because when you have a pot plan […]
Why I Love Chapter 13
How do I love thee, Chapter 13? Let me count the ways. Hang on, because it’s a long list. Thirteen reasons Chapter 13 rocks. I love Chapter 13 because: 1. Debtors keep control of their assets. They run their businesses. There is no trustee tasked to sell their assets. 2. Repayment to creditors […]
Chapter 13 Bankruptcy Disrupted by Coronavirus
Has your Chapter 13 bankruptcy case been turned upside down by coronavirus? You are not alone. And attorneys, trustees and judges are all working on adaptations and adjustments that will save pending cases. Practices and procedures in Chapter 13 vary widely around the country. What follows is what I see here in the Bay Area […]
Pay Off Credit Cards Without Interest And Be Debt Free
The sixtyish client sitting in my office couldn’t pay off his credit cards, even though he had assets worth 10 times his credit card debt. What could bankruptcy possibly do for someone who was solvent? His assets would be sold in a Chapter 7. Assets but little cash His problem was liquidity and an income […]
Chapter 13 Dismissed After All Payments Are Made: Self Inflicted Wounds
There’s been a rash of bullet-ridden feet lately in Chapter 13 cases. Debtors seem to whip out their pistols and shoot themselves in the foot with increasing regularity. Just when their goal of keeping the house was within reach, had they paid attention, they lose it all. It happens when debtors don’t hold up their […]
4 Keys To Chapter 13 Success
How do I make a Chapter 13 plan that succeeds? That’s important because a successful Chapter 13 lets you keep your assets, keep control of your income, and discharge more debts than any other form of bankruptcy. Yet a distressing number of Chapter 13’s fail before they reach the finish line. Debtor writes the plan […]
3 Real Reasons Chapter 13 Plans Fail
Two out of three confirmed Chapter 13 cases fail. Those are cases that met all the tests and got the judge’s OK. And still they crater. That’s a heap of people, deeply in debt, who don’t make it out of debt by using Chapter 13. Arizona bankruptcy lawyer John Skiba has a theory about […]
Why Bankruptcy Cases Go Down The Drain
I watched dozens of Chapter 13 bankruptcy cases get dismissed in a single afternoon in court recently. Dismissed. Tossed out. Ended. The usual reason was that the debtor had not taken seriously the requirement that all their tax returns be filed within 45 days of the commencement of the case. Regardless of the debtor’s need […]
Discharged Debts Don’t Bar Chapter 20 Lien Strip
Underwater liens that linger after an earlier bankruptcy don’t count in Chapter 13. At least, they don’t count against the unsecured debt limit that restricts entry into Chapter 13, says the 9th Circuit Bankruptcy Appellate Panel in Free. Great news for homeowners for whom Chapter 13 was not initially available because they exceeded the debt limits. […]
Social Security Safe In Bankruptcy
The Chapter 13 trustee objected to the debtors’ repayment plan because they did not plan to devote their Social Security income to repaying creditors. And, he complained, they proposed to keep and pay for vehicles that are luxury items. The plan is not proposed in good faith, he claimed, as required by the Bankruptcy Code. The […]
